Intel has confirmed it will be selling a set-top box direct to the public later this year, along with a streaming TV service designed to watch you while you’re watching it.

The device will come from Intel Media, a new group populated with staff nicked from Netflix/Apple/Google and so forth. Subscribers will get live and catch-up TV as well as on-demand content – all delivered direct from Intel over their broadband connections. It’s a move which will put Chipzilla firmly into US living room, and no doubt ignite a host of privacy concerns from those who want to watch without being watched.

The announcement, made during an interview at the AllThingsD conference in California, isn’t a great surprise; rumours of an Intel play have been swirling around for the last year and sure enough Erik Huggers (VP at Intel Media) admitted that the company has been working on the device, and associated service, for the last 12 months. He didn’t say what the service will be called, but did say that the US isn’t ready for entirely Ã la carte options and that Intel will be selling bundles of content – though we’ll have to wait to see what they comprise.